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TTC tunnel-boring machine deal falls through

For sale: four tunnel-boring machines, slightly used, each weighing the equivalent of 280 cars.

The TTC is back to shopping the massive machines after a Chinese company withdrew its offer to buy the tunneling equipment used for the Spadina subway extension.

The machines, nicknamed Yorkie, Torkie, Holey and Moley, were purchased new for $51.7 million in 2009 and were ready to be sold for $9.2 million, said a TTC board report. The TTC had been budgeting $15 million for the sale.

But the company, Lovsuns Tunneling Canada, cancelled the offer in a letter dated July 20.

“After three weeks of continued prompts, the Ministry of Commerce of the People’s Republic of China has unfortunately rejected the import application for the four sets of TBMs (tunnel boring machines),” the letter said.

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It said Lovsuns will keep looking for “potential clients in the Asian area in hopes of the opportunity to co-operate with TTC once again.”

AECON employees viewed the beginning of the Toronto-York Spadina Subway Extension following an event that marked the launch of the tunnel boring at the Sheppard Ave. W. launch site in 2011. (LUCAS OLENIUK / TORONTO STAR) | Order this photo

But finding another suitable offer will be difficult, said Councillor , the TTC chair.

“I don’t see another buyer on the horizon,” she said. “I thought China would be the best bet. Unless another country comes forward now, I don’t see any solution except keeping them, which is really unfortunate.”

TTC spokesperson Brad Ross said that for now, the plan is unchanged.

“They’re still on the market, there’s still a market for them, and we will entertain offers that come in,” Ross said. “We’re not going to be speculating on future uses for them within the TTC, they remain for sale.”

Mayor said he would meet with TTC CEO Andy Byford on Wednesday to see why the city isn’t keeping the machines.

“I want to listen to what he has to say,” Ford said.

“He’s the expert on this. I think it’s important that we keep the boring machines because we have to get the Sheppard and Finch and DRL built, that’s the bottom line.”

The machines completed digging 6.4 kilometres of twin tunnels for the subway extension from Downsview Station into Vaughan in November 2013.

The thwarted sale comes after a lengthy process of finding a second use for the TBMs, detailed in the board report.

The TTC considered reusing the TBMs to dig the tunnel for the new Scarborough subway, but estimated the cost of storing, refurbishing, moving and servicing the TBMs would cost about $28.8-million.

Buying new TBMs would cost $54-million, but the increased productivity from updated technology would save 1.7 months in construction time, the report said, which translates to $22-million in savings.

Though buying new would still cost an extra $3.3-million, the amount is “not significant” when considering the risk of breakdowns in old equipment, the report said.

The TTC started looking for a buyer in late 2012, but found little interest and offers that were too low until Lovsuns made the bid in May.

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